PKN places two offers for Lithuanian oil terminal

Poland's leading refiner PKN Orlen PKNA.WA filed made two proposals that could give it control of the Lithuanian Klaipedos (KNF1L.VL) oil terminal, the company's chief executive Jacek Krawiec said on Friday.

The Lithuanian government, which controls the terminal, will decide on the offers in January, Lithuania's Prime Minister Andrius Kubilius said.

"We want to get either a minority stake with operational control right, or a majority stake," Krawiec told a press briefing. "It makes no difference to us (which option Lithuanian government choses)."

PKN Orlen, which already controls Lithuanian refinery Mazeikiu, has suffered a blow after Russian crude supplies to the refiner via the Druzhba pipeline were choked off.

This forced it to ship crude via the offshore terminal in the Baltic Sea at higher cost. Mazeikiu also exports 60 percent of its output via sea routes and the Klaipedos terminal would help it cut down on transport expenditures.
Source: By Nerijous Adomaitis, Patryk Wasilewski Andrew Callus, reuters.com